Jindal Poly Films an Undervalued Stock

Jindal Poly Films: This stock have been in the down trend since the starting of 2018 corrected almost 52% from its 2018 high. For last 2 month it is trying to form a bottom around 200 level. The breakout of the downtrend line giving an indication of trend reversal whereas the +(ve) divergence is supporting the breakout and the bullish moment in the stocks. MACD has also formed a bullish divergence and moving ahead into the +ve zone.

Apart form these bullish indication we have also noticed the accumulation process in the stock while this stock was in the consolidation and downtrend. OBV indicator has been continuously in the up trend that clearly shows the accumulation in the stock.

Apart from its Technical Analysis we have also gone through some Fundamental Analysis. This stock is currently trading 247. It has a Market Cap of 11 Billion Rupees. The 52 week high and low is 205-462. The current per share price of the stock is around 247, Whereas we have calculated the book value of the stock 565 per share that is around double from the current level. The Earning Per Share(EPS) of the stock is around 19.5. The PE Ratio of the stock is 12.5 but the Industry P/E Ratio is 22.7 that is the double of the stock P/E Ratio. The Price to Book Value (P/B Ratio) of the stock is 0.45 the lowest among its peer companies. A lower P/B ratio could mean that the stock is undervalued. Share Holding Patter: The major portion of the company is held by the promoters of the company that is around 75% and rest of the portion held by the institution and Non Institution investor where the 3% is held by the Institutional Investor. The major portion of the stock held by the company has triggered that the promoters are bullish in the stock and they are confident about the performance of the company. We are expecting 560 level for the next 1 yr.